February 14, 2006
Gazprom interested in Venezuela-Brazil-Argentina gas pipeline

(EFE) - "Russian energy giant Gazprom said Tuesday it was interested in participating in the construction of the gas pipeline linking Venezuela to Argentina via Brazil.

Gazprom, which operates the largest gas pipeline in the world, said the project was discussed in the course of the talks held by the head of the company's international relations department, Stanislav Tsigankov, during his recent visit to Venezuela.

A delegation from the Russian energy company met with Venezuelan Energy Ministry officials and executives of state-owned oil giant Petróleos de Venezuela (PDVSA).

The South American project, which calls for building a pipeline some 8,000 kilometers (nearly 5,000 miles) long with a capacity to carry 100 million cubic meters (3.5 billion cubic feet) of natural gas per day, mostly from north to south, would cost between $15 billion and $23 billion.

The pipeline would run between Puerto Ordaz, Venezuela, and Argentina.(...)

From Manaus, capital of the Brazilian state of Amazonas, the conduit would split into two branches: one running south to Rio de Janeiro; the other eastward to Brazil's impoverished northeast.

The southern spur would continue from Rio into the Brazilian industrial heartland - linking up in Sao Paulo with the existing Gasbol pipeline that delivers 30 million cubic meters of Bolivian natural gas to Brazil - and extend from there to Argentina.

Last week, Brazil's Petrobras also held talks with Gazprom. The big question is whether the pipeline operators can offer the gas at a competitive price and still recoup their hefty investment. EFE"